Aussie businesses achieving ‘more with less’: NAB
Australian businesses have improved their processes and efficiency despite economic challenges, according to the latest NAB SME Business Insights Report.
The December edition of the NAB SME Business Insights Report revealed a quarter of Australian businesses had been doing “significantly more with less” over the past year.
The report revealed one in four businesses were making the most of what was available and optimising their existing assets and capabilities to achieve growth with new overheads or outlay.
“If you’re operating or managing a business right now, you’re likely focused on getting the most out of what you have to hand- upping your productivity or output without tacking on additional expenses,” NAB said.
“How they’re going about it may differ, but more than one-third say they’re managing their time more effectively, while a similar proportion are consolidating their business or simplifying their processes.”
The December edition of the report also revealed that only a quarter of businesses said sales demand was holding them back, a smaller proportion than in previous quarters.
Labour availability remained a notable constraint for businesses in this edition, as 30 per cent reported a direct impact on operations and processes.
“It’s certainly not the easiest time to be in business, with our report showing labour availability still worrying 30 per cent of businesses,” NAB said.
“However, sales demand is easing as a concern, showing some momentum coming back into the economy.”
Businesses said they were using a variety of tactics to trim waste, improve efficiency and achieve productivity gains.
Thirty-six per cent said they were looking for more effective time management methods and 35 per cent were pursuing better prioritisation or consolidation of their business.
A further 37 per cent said they were simplifying how they operated and did business.
NAB said businesses have taken the right approach when trying to survive persistent market challenges.
“Trimming waste and inefficiencies will always benefit a business, and new tools and techniques that Australian businesses are turning to are helping to increase productivity while also cutting costs,” NAB said.
“The fact is, businesses are gritting their teeth and getting through these more challenging times as best they can, using whatever tactics, assets and can-do attitude they have available.”
Additionally, one in four businesses revealed they were adopting automation to improve their productivity and efficiency.
NAB noted that for the businesses with the means, this could include cash- or debt-funded asset purchases or upgrades to existing hardware or software.
It could also involve upskilling to use low-cost or free tools to handle simple, labour-intensive tasks.
On the other hand, one in five businesses reported they were turning to improved training and continued learning to augment employee engagement and capability.
NAB said Australian businesses were set to tackle 2025 with a fresh approach.
“Looking ahead, businesses are likely to come into 2025 leaner, tougher and hungrier to take advantage of the new opportunities out there.”
“Geopolitical uncertainty may continue to weigh on the economy, but we’re optimistic about improved conditions, and those businesses which are getting themselves in shape now are at some point going to reap the rewards.”
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